Starting a Business? LLP or Company… [Infographic]

With Introduction of LLP (Limited Liability Partnership) couple of years back, entrepreneurs in India have choice of whether to start their business as an LLP or a Private Limited Company.

But which one is better?

There is no absolute rule that makes one business entity better than the other. The selection of same should be purely case specific based on factors such as the objectivity of the founder, business rationale, funding requirement, ownership and management control and such other factors.

Deciding the right entity is very critical for the Startups and businesses because whether you choose a Company or a LLP will determine who can share ownership of the business, management of the business, how the business is taxed and who will be held liable for the business’s debts.

Folks over at Taxmantra.com have put together an infographic, that should enable the Entrepreneurs to decide the most appropriate legal form for their businesses.

[Click on Infographic to enlarge]

[Note: Trak.in has partnered with Taxmantra to bring you more information and articles on accounting, legal, regulatory, taxation related matters.]

Arun Prabhudesai is founder / chief editor at trak.in. He jumped the Entrepreneurship bandwagon in early 2008 after a long 13 year stint in I.T Industry. You can follow him on twitter @trakin and Facebook.Arun’s Google+ Profile